Oil exploration drilling operations in the Egyptian desert
The Egyptian Ministry of Petroleum intends to drill 133 new oil and gas wells during 2025-2026
The Egyptian Ministry of Petroleum intends to drill 133 new oil and gas wells during the fiscal year 2025-2026 in several sedimentary basins, according to a government official. The official said that investments in drilling plans and programs will exceed $5.5 billion, financed by foreign partners to drill new exploratory wells in concession sites under the umbrella of companies operating in the Egyptian market.
He pointed out that the Egyptian Ministry of Petroleum, through the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian Petroleum Corporation, seeks to drill approximately 70 new wells during the first half of the current fiscal year and more than 60 wells during the second half of 2025-2026 with the aim of making new discoveries.
He stated that drilling plans focus on gas concession areas in the Red Sea, the Mediterranean, the Nile Delta, and the Western Desert, while oil drilling plans focus on basins in the Gulf of Suez, the Western Desert, and the Mediterranean. During a meeting with petroleum company executives, Egyptian Petroleum Minister Karim Badawi revealed that $3.6 billion in fuel import bills, which the state would have borne during the 2024-2025 fiscal year, have been saved thanks to improved production rates and plans to drill and develop oil and gas wells over the past period.
He explained that international companies play a vital role in implementing targeted drilling plans, whether through financing, technology transfer, or technical operations, as well as participating in the drilling of new wells within the development of discovered fields and others under evaluation. The official stated that the Egyptian Ministry of Petroleum aims, through this plan, to stabilize current production rates and reduce the decline in monthly well productivity, which is approximately 20% for oil wells and between 15 and 20% for gas wells.
He added that the Egyptian Natural Gas Holding Company (EGAS) is currently coordinating with foreign partners to increase natural gas production during the current and next fiscal years, reaching daily production rates exceeding 6.5 billion cubic feet per day, compared to the current 4.1 billion cubic feet.
The official confirmed that the investment incentive measures implemented by the Egyptian government and the commitment to paying partners' dues have contributed to restoring investor confidence, allowing them to inject new capital, halt the decline in production, and mitigate some of the current year's fuel import bill.
He pointed out that the Egyptian Ministry of Petroleum is working to offer a package of new investment areas to foreign partners through the Egypt Exploration Portal. These areas will include onshore and offshore exploration areas, aiming to increase oil and natural gas reserves and achieve self-sufficiency in the coming years. The Egyptian Natural Gas Holding Company (EGAS) aims to add approximately 2.2 trillion cubic feet of recoverable natural gas reserves from Mediterranean fields during the current fiscal year 2025-2026, according to a government official.
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